The AMX-40 was developed as a private venture specially for the export market. It was first revealed in 1983. The AMX-40 uses a number of components of the AMX-32 prototype MBT, however it is considered as a new design. Four prototypes had been built by 1986, unfortunately no production orders were placed on this MBT.

The AMX-40 main battle tank has all-welded hull and turret with composite armor on the frontal arc. Frontal armor can withstand hits of 100-mm projectiles. Vehicle is fitted with NBC protection and automatic fire suppression systems.

This main battle tank is armed with a French GIAT 120-mm smoothbore gun. It is fully-stabilized and fires all standard NATO 120-mm rounds, as well as indigenous French ammunition. A total of 40 rounds are carried. Main gun ammunition is stored in the rear turret bustle, fitted with blow-out panels.

The AMX-40 is fitted with COTAC fire control system, similar to that of the AMX-32 MBT. It is claimed that the AMX-40 has a hit probability of 90% against a stationary target at 2 000 m range. It can also engage a moving target, while on the move.

Secondary armament consists of 20-mm quick-firing cannon with independent elevation. It is also fitted with a remotely controlled 7.62-mm machine gun, mounted on top of the roof.

Vehicle has a crew of four, including commander, gunner, loader and driver.

The AMX 40 tank is powered by the Poyand V12X turbocharged diesel engine, developing 1 100 hp. It is well suited for a desert warfare. Vehicle can be fitted with auxiliary fuel tanks as well as dozer blade. After preparation it can ford water obstacles up to 4 meters deep.